.co .Co to rev up premium domain model

[News]

Neustar, the company that operates the .Co domain name, is drastically expanding its premium domain name program starting September 1.

As of a couple of years ago, new TLD seller donuts was generating $9 million in annual revenue from premium domains, representing 15% of sales. Another new TLD company, Radix, made 10% of its revenue last year just from the renewal of premium domains...

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[alcy]

im confused
where will .co get those premium names to price them higher at the initial registration/purchase time ... if most/all such premium names have been registered for years.. by domainers and or companies.. and will continue to be registered for years in future too most likely.

 

[D Haynes]

im confused
where will .co get those premium names to price them higher at the initial registration/purchase time ... if most/all such premium names have been registered for years.. by domainers and or companies.. and will continue to be registered for years in future too most likely.

Yeah I'm wondering the same thing. For an established extension I don't think this is the way to go. I can only see it strengthening .com. It wouldn't surprise me if in a year's time they say "right, in 3 years we're going to implement the premium pricing for renewals of already registered names". Or they don't allow registrar's to renew their names for another year and have expired auctions so they're forced to drop if the original registrant doesn't renew.

 

[garptrader]

Cheap registrations and renewals facilitate domain speculation. A domain investor with 100 domains in an extension with $10 renewals only needs a couple of mid $xxx or one low $$$$ sale to cover the renewal bill. But if renewals are $50 each speculation is much more limited. $5000 sales are not common in alternative tlds. So higher renewals will increase drops and then the registry can decide to retain some of those drops as premiums.

 

[alcy]

Yeah I'm wondering the same thing. For an established extension I don't think this is the way to go. I can only see it strengthening .com. It wouldn't surprise me if in a year's time they say "right, in 3 years we're going to implement the premium pricing for renewals of already registered names". Or they don't allow registrar's to renew their names for another year and have expired auctions so they're forced to drop if the original registrant doesn't renew.

true

and while it may be possible for an extension to somehow "force" people to drop their names.... I think we can all imagine the rare and bad taste this would leave in everyones mouth

it'd be like sigining their death sentence imo

let's hope despite this silly move from .co, they are not that reckless as to somehow "force" people into dropping their names.

 

[alcy]

Cheap registrations and renewals facilitate domain speculation. A domain investor with 100 domains in an extension with $10 renewals only needs a couple of mid $xxx or one low $$$$ sale to cover the renewal bill. But if renewals are $50 each speculation is much more limited. $5000 sales are not common in alternative tlds. So higher renewals will increase drops and then the registry can decide to retain some of those drops as premiums.

it was mentioned in articile and made particularly clear many times over in the comments below article, that this will have nothing to do with increasing renewal prices of .co and will strictly apply to new registrations of names.

hence my qustion and dilema.. and that of many others too.

cheers